Here’s Why You Shouldn’t Check Your Portfolio Right Now
Market downdrafts tempt people to adjust their investments, but that’s not always a wise choice.
Market downdrafts tempt people to adjust their investments, but that’s not always a wise choice.
If you logged on to your brokerage account today and wish you hadn’t, you’re not alone.
BlackRock Chief Executive Larry Fink said Monday the asset manager hasn’t received this many client calls since March 2020, when the pandemic was beginning.
Retail brokerages including Fidelity Investments had technical glitches Monday morning as traffic surged from people trying to check their portfolios and place trades.
Studies have found that the more people look at their 401(k)s, the lower their long-term returns are likely to be.
The S&P 500 drops on almost half of trading days, so checking your portfolio more often means you are more likely to see losses. And there have been lots of losses since President Trump rolled out a series of tariffs last week.
In just two trading days last week, the average 401(k) lost 7% of its value, according to Alight Solutions , which tracks employer retirement plans. Individual investors moved money out of stock-heavy target-date funds and into the relative safety of bonds and cash.
That’s understandable, but not necessarily wise. Here are some things financial advisers say to keep in mind right now:
Now that the S&P 500 is down almost 20% from its peak, many people are realizing that their risk tolerance isn’t as high as they thought it was when markets were up 20%, said Chelsea Ransom-Cooper, chief financial planning officer at Zenith Wealth Partners in New York.
“It’s a great time to level-set and reflect on what you’re comfortable with,” she said. However, if you decide to make changes, you should tweak a little at a time to avoid making emotional decisions you regret later, she said.
In general, you should avoid the impulse to sell when the value of your investments falls, said Martin Lowenthal, financial adviser in Needham, Mass.
He has been telling his clients to stay the course and advising that they pull money from alternative sources such as life insurance plans if they need liquidity in the short-term.
“You shouldn’t be drawing from depressed assets if you have other places to go for income,” he said.
However, falling stock prices can create opportunities to save on taxes. If you find yourself with stocks or funds that are worth less than what you paid for them, you may be able to recognize the losses for tax purposes. Selling at a loss and reinvesting the money can help offset taxes on future capital gains while remaining invested in the market.
There may be reasons to add to investments, financial advisers say, especially if you have been sitting on cash. Cash losses value to inflation, which is expected to rise as companies digest new tariffs.
With markets starting to price in rate cuts , now might be a good time to lock in returns with fixed-rate products such as certificates of deposits or bonds, Ransom-Cooper said.
If you are younger and have a longer investment horizon, you can consider making small investments into the stock market at regular time intervals to take advantage of a potential rebound while managing risk.
“If you are concerned about inflation, you want to make sure that your money is at least trying to keep up,” she said.
This isn’t the first time the market has tested investors’ stomach for risk, and history says it won’t be the last. There was the financial crisis, then there was the pandemic, and “this time, it’s the tariff tantrum,” Lowenthal said.
“I’ve got full faith in the American economy to ride this out,” he said.
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Australian shares fell on Thursday as Wall Street weakness, rising oil and persistent rate concerns weighed on most of the market. The S&P/ASX 200 declined 0.72 per cent to 8,702. The All Ordinaries lost 0.66 per cent to finish at 8,897. Mining stocks were hit particularly hard, while real estate also dragged on the index. …
Continue reading “ASX falls 0.7 per cent as miners and property stocks retreat”
Australian shares fell on Thursday as Wall Street weakness, rising oil and persistent rate concerns weighed on most of the market.
The S&P/ASX 200 declined 0.72 per cent to 8,702. The All Ordinaries lost 0.66 per cent to finish at 8,897. Mining stocks were hit particularly hard, while real estate also dragged on the index.
Energy was the notable exception, gaining more than one per cent as Brent crude traded above US$103 a barrel. Oil had moved higher amid uncertainty surrounding potential US diesel-export restrictions and broader geopolitical supply risks. The move supported energy producers but renewed concern about inflation inputs across transport and the wider economy.
Gold shares were weak even as spot bullion remained historically elevated. The All Ordinaries Gold index fell about 2.25 per cent, showing that equity performance can diverge from the commodity because of valuation, currency, operating and company-specific factors.
Zip was a prominent loser, falling 11.38 per cent after the company reported short sales after the previous close. Nine Entertainment also weakened after UBS analysts warned of near-term revenue challenges associated with its advertising-supported subscription tier.
Premier Investments led larger winners despite caution about the retail environment. Breville, in which Premier owns a significant stake, also appeared among leading movers. In the broader ASX 300 screen, Myer gained 11.43 per cent and MAAS Group rose 7.93 per cent, while Lotus Resources fell 10.53 per cent. These percentage moves should be checked against company announcements and trading liquidity before attributing causes.
The Australian dollar was broadly flat at US70.38 cents. Spot gold was around US$4,280 an ounce, Brent crude approximately US$103.08 a barrel and iron ore near US$96.90 a tonne late in the session.
The rate outlook remains the central domestic catalyst. Labour-market weakness has not eliminated the possibility of an RBA increase next week, leaving banks, listed property and other rate-sensitive sectors exposed to changing expectations.
Market dashboard
S&P/ASX 200: 8,702, down 0.72 per cent.
All Ordinaries: 8,897, down 0.66 per cent.
Best sector: Energy, up more than one per cent.
Weakest areas: Real estate and materials were the major drags; confirm final sector percentages before publication.
Material winner: Premier Investments led the large-company gainers. Confirm its final closing move from the ASX before publication.
Material loser: Zip, down 11.38 per cent.
ASX 300 percentage leader: Myer, up 11.43 per cent.
ASX 300 percentage laggard: Zip, down 11.38 per cent.
AUD/USD: Approximately US$0.7038, broadly flat.
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